Texts of General Interest (link)
Dr. James Manos (M.D.)
October 3, 2022
The European Union (E.U.) is on the verge of dissolution!
The Russo-Ukrainian War (2022) and the impending catastrophe of Europe
15 crucial matters of consideration
Image (free to use): E.U. flags in front of the Berlaymont building, head office of the European Commission. Uploaded by the user Amio Cajander. Source: Wikipedia. Link: https://en.wikipedia.org/wiki/File:Banderas_europeas_en_la_Comisi%C3%B3n_Europea.jpg
Synopsis
Currently, Germany dominates the European Union (E.U.), aiming at its prosperity at the expense of the wealth of the other member states! Undoubtedly, the E.U. needs to be federalized with a new agreement between its participating countries. Otherwise, it will continue to be manipulated by Germany!
I) The Russo-Ukrainian War (2022) and the impending catastrophe of Europe
About the Russo-Ukrainian War (2022), you may read my text Russia's invasion of Ukraine
and watch my related YouTube video
You may also read my text The Real Story of the Energy Crisis
The Russo-Ukrainian War (2022) and the E.U.: Overview
On February 23, 2022, Russia invaded Ukraine showing that it does not respect the sovereignty of this country to decide on its future, such as becoming a NATO and European Union member. During the invasion, Russia committed crimes against humanity. The West condemned Russia's attack on Ukraine, but it is unreasonable it did not act similarly during the U.S. war crimes in the past. Europe decided to impose financial sanctions on Russia while it depended on Russian natural gas for energy! Common sense says that the European countries should first find energy alternatives before taking severe sanctions, as it allowed Russia to extort them.
Europe insanely believes that the alternatives to Russian natural gas will be cheaper. But this is not the case! The U.S. or the Middle East Liquefied natural gas (LNG) is far more expensive, as it needs carriers and floating LNG terminals. Also, it is said that Saudi's oil is about to become extinct, while Qatar cannot give enough natural gas to everyone. Will the USA be happy with Iran and Venezuela as alternatives?
So, Europe's decision for sanctions means that it irrationally followed the U.S. plan, ignoring that the only incentives of the U.S. were to sell Europe their expensive LNG and bring the Russian economy to its knees!
The Russo-Ukrainian War (2022) and the E.U.: Frequently Asked Questions (FAQ)
Is the Ukrainian crisis a proxy war?
A proxy war is an armed warfare between two states or non-state belligerents who act on the incitement or behalf of other parties not directly involved in the hostilities. Hence, the potential war between Ukraine and Russia is indirectly between Russia and the West, i.e., the USA and the European countries that offer financial and military aid to Ukraine.
Does Europe depend on Russian natural gas?
The former German Chancellor Angela Merkel is responsible for Germany's dependency on Russian natural gas. The other E.U. countries were also based on Russian supply. The result is that now Russia uses it to extort the E.U. that ought to have alternative pipelines from other countries such as Iran, the Saudis, Qatar, and Azerbaijan. Europe should have also invested in renewable energy sources and pursued other energy sources such as undersea methane hydrates, deuterium (one of two stable isotopes of hydrogen), heavy water hydrogens, nuclear plants, etc.
Are there natural gas storage reservoirs in Europe?
The most important in this crisis is that Europe has no natural gas reservoirs in inventory in underground facilities (depleted reservoirs in oil or gas fields, aquifers, and salt cavern formations) or stored gas in a liquid or gaseous form in above-ground tanks.
Should Europe pursue the agenda of the USA imposing an embargo on Russian natural gas and oil?
Even as NATO members, the European Union (E.U.) countries are not obliged to willingly follow the American decision-making agenda, as the only incentive of the U.S. administration is to replace Russia as an energy supplier to Europe. European leaders should be skeptical and not function as NATO members, as the E.U. is a political and economic union, while NATO is an intergovernmental military alliance.
On March 8, 2022, the U.S. President announced America's embargo on Russian oil, natural gas, and coal. The British Prime Minister announced the same but more gradually. Russian oil comprises only 8 percent of American imports. At the same time, Norway was the leading supplier of crude oil and natural gas for the U.K. On the contrary, Europe was highly dependent on Russian natural gas, which made up 45 percent of its imports.
Consequently, the U.S. embargo will not significantly affect the U.S. economy. As a result of this ban, oil and natural gas prices soared. However, the USA has strategic shale gas reserves. But Europe needs more reservoirs of natural gas or alternative sources.
The American shale gas and LNG
Shale gas is natural gas that is found trapped within shale formations. In the last decades, it has become an increasingly important source of natural gas in the USA, which is interested in selling it to the rest of the world. The USA aims to sell its shale gas and LNG (Liquefied Natural Gas) to Europe with LNG carriers. On the other hand, Russia intended to offer Germany cheaper natural gas, primarily via the Nord Stream 2 pipeline.
The Russian reserves are enormous, especially concerning its new share in Iran's Caspian gas field in early 2022. Consequently, Russia monopolizes the gas supply to Europe and elsewhere because of its vast resources. Unbelievably, Russia soon expected to seek new reserves in the Arctic!
After the Russian attack in Ukraine, the USA is happy to offer its LNG (and perhaps its shale oil), meaning that it will replace the Russian supply, along with Qatar, the Saudis, Azerbaijan, and other oil and gas-producing countries. But LNG needs carriers. The LNG ships and terminals, as well as liquefying the gas, have a considerable cost.
II) The fifteen most significant problems in the European Union (E.U.)
1. Europe manipulated by Germany
The most fundamental problem in the European Union (E.U.) is that it is manipulated by Germany, which does not mind the common E.U. interests but the prosperity of its own economy. But its economy is no longer growing. At the same time, Deutsche Bank is exposed to toxic bonds. The COVID-19 (coronavirus) crisis during the Spring of 2020 showed no solidarity from Brussels to the E.U. countries, especially Italy and Spain, where the death toll from the virus was considerable.
It is despicable that during the coronavirus crisis, many countries showed zero solidarity in trying to withhold medical equipment (including masks and ventilators) on their soil, prohibiting their export to other countries that needed them more than ever. Germany disagreed with the European bonds (''corona bonds") that would offer cheaper funding for the inflicted countries. China provided Italy with protective health equipment, including face masks and expert healthcare personnel!
In the past, the matter of consideration was a two-speed Europe, the affluent North, and the poor South. Now we can speak about single-speed E.U.: Germany. Of course, Germany is the locomotive of Europe. Still, it should not be at the expense of the remaining E.U. member states where the obsession with austerity measures aimed at financial sustainability has increased poverty rates.
It is despicable that during the coronavirus crisis, many countries showed zero solidarity in trying to withhold medical equipment (including masks and ventilators) on their soil, prohibiting their export to other countries that needed them more than ever. Germany disagreed with the European bonds (''corona bonds") that would offer cheaper funding for the inflicted countries. China provided Italy with protective health equipment, including face masks and expert healthcare personnel!
In the past, the matter of consideration was a two-speed Europe, the affluent North, and the poor South. Now we can speak about single-speed E.U.: Germany. Of course, Germany is the locomotive of Europe. Still, it should not be at the expense of the remaining E.U. member states where the obsession with austerity measures aimed at financial sustainability has increased poverty rates.
Germany did not pay the second world war (WWII) reparations for the atrocities of the Nazis. After the war, the U.S. decided to politically support West Germany and keep it under the American sphere of influence, as East Germany was under the Russian one. But it is doubtful if the Germans paid the necessary war reparations for WWI, at least the amount they should pay for their war crimes.
As a NATO member, Germany has participated in the most significant conflicts worldwide, while it had meaningful political participation in Yugoslavia's civil war and the dissolution of Yugoslavia. Recently, it intervened in the civil war in Ukraine in 2014, supporting the Ukraine government against the pro-Russian rebels. However, ironically, Russia supplies Germany and other Central European countries with natural gas.
2. The deindustrialization of Europe
In most Western countries, including those in Europe, many industries and manufactories have moved to developing countries, such as the Balkans, China, India, and Africa, where taxation is low, and labor is cheap. Today India and China have boosted their production. Worldwide, most goods are imported from these or other developing countries. For instance, fish are imported from Tunisia, potatoes from Egypt, nuts from Iran, dairy products from Bulgaria, etc.
The issue is that European countries have been industrialized. Their economy will only be sustainable if it is based on accumulating loans instead of production other than service! Capitalism is so insane that even the production means do not belong to the private sector but have been moved to China, India, and other emerging economies, including Brazil and Russia. Europe's deindustrialization was evident during the COVID-19 (coronavirus) crisis in the Spring of 2020 when most countries relied on China to provide them with protective health equipment, including cheap face masks and gloves!
The issue is that European countries have been industrialized. Their economy will only be sustainable if it is based on accumulating loans instead of production other than service! Capitalism is so insane that even the production means do not belong to the private sector but have been moved to China, India, and other emerging economies, including Brazil and Russia. Europe's deindustrialization was evident during the COVID-19 (coronavirus) crisis in the Spring of 2020 when most countries relied on China to provide them with protective health equipment, including cheap face masks and gloves!
3. The Brexit
3. The decision for ''Brexit,'' i.e., Britain's exit from the E.U., shocked Europe. On June 23, 2016, the U.K. imprudently decided to abandon the European Union while it would continue to belong to the U.S. sphere of interest. However, the recent ''trade war'' the USA launched against Europe, and the rest of the planet means that the Americans mind only their own interests, and it is doubtful that they will support Britain.
The Brexit decision caused turmoil, and some European Union members with financial instability, such as Italy, recently expressed their concerns about staying or leaving the EU. In the U.K., the idea of Brexit generated dissolution tendencies, as Scotland and Northern Ireland both wish to remain in the EU and enjoy their benefits. The ''yes'' on the referendum for Brexit occurred unexpectedly, despite ‘Bremain’ (staying in the E.U.) being favored in the opinion polls. Britons had an additional reason to vote 'yes,' as the Queen at a VIP dinner asked to be given ‘3 good reasons why Britain should be part of the E.U.’!
Many believe that Brexit is a fateful decision as the sterling will eventually lose its value as a currency. The British economy has lost competitiveness because China and India currently monopolize global development and exports, as their production is cheaper than the West. During Brexit, I tried to figure out what Britain exports; the only things I could think of as British were the Rolls-Royce engines and the GlaxoSmithKline drugs! However, an economy that produces only services cannot be sustainable. George Soros, a Hungarian-American investor, warned that Brexit will cause a collapse in the British pound and doom the British economy. In 1992, George Soros brought the British economy to its knees. He also earned money when he bid on Brexit!
4. The lack of a European army
It is unbelievable that the E.U. does not have its own army, a 'Euro army.' Additionally, the E.U. does not have a firm foreign policy, but decisions are taken by Germany and France. The E.U. also has no common interests with the USA. Undoubtedly, the U.S. interests are related to controlling the oil and natural gas pipeline reserves and routes in the Middle East. In all military campaigns that the U.S. launched in the Middle East over the last 2 decades, usually with the excuse of 'war on terror,' the E.U. consents, as most E.U. members are also NATO members. However, it would be wise for the E.U. to have its military force and foreign policy rather than following the U.S. in its ongoing military campaigns.
On the other hand, the E.U. has had good relations with Iran and Russia, as both were oil and gas suppliers. However, the U.S. has imposed sanctions against Iran and now forbids the E.U. from buying Iran's cheap oil, while it has undermined the Russian influence on Europe. The U.S. promoted the pipelines that belonged to their sphere of influence, trying to ''wean'' the E.U. from Russia. Obviously, this was the real reason for the Syrian civil war. I point out that U.S. interests only sometimes coincide with E.U. interests! That is why recently, France opposed the U.S.'s decision to step out of the nuclear weapon agreement with Iran.
5. The lack of Common Justice
In Europe, there is no common judicature nor a common European Constitution. Although the European Court of Justice is the highest-level institution, each E.U. country has its own justice system and constitution. Thus, there may be a discrepancy between the E.U. countries concerning laws and statutes that often differ in each state!
In the E.U., there is no sheer agreement even for simpler things, such as the clock-changing! After an internet referendum, the E.U. decided to abolish the clock change by one hour from summer to wintertime and vice versa. However, they chose this to be optional for each country, while the decision to remove Daylight Saving Time is expected in 2020!
6. Referendums undermining the federalization of Europe
Referendums have destroyed the tenacity of the E.U. Although considered direct democratic procedures, referendums have been used imprudently and have led to wrong decisions. For instance, in 2016, impulsively, Britons decided to have a referendum against their participation in the E.U. They eventually decided to leave the E.U. It was a fateful decision. Also, in 2005, with a referendum, the French opposed creating a common European constitution! After all, it is impossible to repeatedly hold referendums and expect a consensus among diverse countries.
From my perspective, referendums need active citizens with a superior level of education (not overspecialized as modern people) and comprehensive knowledge of political issues. Apart from Switzerland, referendums have not worked effectively, as decisions were almost always unwise as populist politicians manipulated with the aid of biased media! Even in Switzerland, where referendums are used as a way of ‘direct democracy,’ a few years ago, the citizens were called to decide if the government should increase their wages! Surprisingly, they decided 'no,' as this would attract migrants from all over the world!
7. The catastrophic veto's right
Besides referendums, a great catastrophe is the veto's right every E.U. member state has at collective decisions! This right often prevented the E.U. from taking essential steps to federalization progress, while it impeded crucial decisions.
The European Union needs to be federalized with a new agreement between the E.U. states. In the new treaty, all members will discuss and agree on all the critical matters. When and if this day comes, it is practically challenging to hold referendums for every subject and expect all E.U. member states to agree on everything. But even today, referendums have not been used in Europe for essential matters, including the ''open border policy'' that encouraged uncontrolled migration from Asia and Africa towards Europe from people called 'refugees' when, in fact, they were economic migrants! Unfortunately, in Europe, populism (mainly the far-right) has deleterious effects on making decisions.
8. The open-border immigration policy
Over the last years, Germany backed 'open borders,' not for humanitarian reasons, as naively a German said to me some years ago. The real reason was to attract cheap labor, technicians, and specialized personnel to work in Germany, where the local population is aging. In September 2015, the Germans welcomed with flowers the heaps of Syrians and Afghan migrants and refugees. The persistence of the former German Chancellor to the open-border policy threatened the tenacity of the coalition government in Germany.
The reason for encouraging migration surges since 2010 was that the European population is aging, so new labor (and educated people) came to fill the gap, especially in Germany, Europe's locomotive! But they did not mind that many migrants, including children and pregnant women, would drown in the Mediterranean Sea in their attempt to reach Europe with inflatable boats from the Turkish and Libyan coast. So, their humanitarian feelings can be debated! The investor George Soros, also a founder of 'Open Society Foundations' (NGO), has claimed that filling this gap is important because of the aging European population. This opinion may be logical and acceptable when migration follows some rules, as in the USA and Australia. However, in Europe, it did not, but it was chaotic!
Many migrants were called by the media as refugees, although many came without documents. In fact, most of the so-called refugees were economic migrants from Asia and Africa who came to live the 'European dream.' The real number of migrants who entered Europe is unknown, but it may be a couple of million migrants or even more! The tactic of joining family members was also a disaster. The usual deliberate tactic was for families from poor regions, such as Pakistan and Bangladesh, to send their children alone to Europe. Then, they exploited the reunion law so that the rest of the family came to Europe!
Unfortunately, the ''open border'' policy in Europe increased far-right political parties and chauvinism, especially in the Visegrad group composed of the Czech Republic, Hungary, Poland, Slovakia, and Austria. These countries, as well as others such as Bulgaria, strongly opposed uncontrolled migration. It should be noted that the previous coalition government between the far right and the populists in Italy decided to ''push back'' ships with migrants from Africa and not allow them to dock at Italian ports! However, the new coalition government continued the tolerance tactic.
The way that migration towards Europe occurred over the last years was inhuman as many, including children, drowned trying to reach Greece from the Turkish coast (where about 3 to 3-4 million people are about to migrate to Europe) and Italy from North Africa with small boats, ''tubs,'' wooden or inflatable. Additionally, many migrants deliberately tore their documents when they entered a European land, so their real identity was unknown. In some terror attacks, it was revealed that the jihadist terrorists came to Europe as refugees.
The whole migration procedure has turned into a hugely profitable business for the smugglers of human trafficking, especially those in Turkey. Moreover, colossal amounts from the European budget have been spent subsidizing migration, such as refugee camps, accommodation, facilities, food, house renting vouchers, access to health and education services, etc. Importantly, these are public E.U. money! Grants for migration are also given by the U.N., which encourages migration as well! Another issue of consideration is the ‘Islamization’ of Europe, consequently establishing Islamic fundamentalism in the continent.
Standard migration policy must follow the rules, such as in the U.S. and Australia. It is prudent for Europe to adopt a migration policy that will not encourage all the population of Africa and Asia to migrate to Europe but to prioritize who will be given asylum. Asylum should be given priority to genuine refugees, as today we have the unacceptable phenomenon of economic migrants being called 'refugees' when they are not. Additionally, since the West has caused chaos in the Middle East, it should care for the refugees who are victims of Western interference, such as Syria.
Especially noteworthy is the proper identification check of refugees, as many deliberately tear their documents when they enter European land. This ID check will prevent criminals and terrorists from entering Europe and include a criminal record document! A medical examination is also essential, as Europe's tropical diseases, measles, and T.B., are now more prevalent than in the past.
9. The catastrophic quotas
Although the E.U. is a common market, quotas on each country's production have been imposed, involving agriculture production, fishery, and livestock. These allowances are often for the benefit of specific nations but may oppose others' interests in which an upper limit on production with percentages is imposed. These quotas may involve, for instance, how much milk or cattle a country may produce and how long a bottle of milk will be labeled as fresh in the supermarket! These percentages are manipulated by financial Trusts that serve the interests of the more affluent countries. E.U. M.P.s are often keen to promote the interests of private Trusts! However, not all E.U. members are satisfied with these quotas, not even France!
10. The lack of economic, not just monetary, union
Another contentious issue is that there is no common currency for all E.U. member states. But essential to a potential federalization is for all member states to have the Euro as currency, as occurs now in the Eurozone. Equally important is a standard economic system. Additionally, the ECB (European Central Bank) should plan a monetary and fiscal policy, have departments in all member states, and fulfill the E.U.'s interests as a whole and not only of Germany as it currently does! Otherwise, Europe will be divided into the rich North and the poor South as today! Already now, we have a multi-speed Europe! The financial E.U. policy has failed as the E.U. is not a federation with standard fiscal policy. Still, to put it simply, it resembles the system of feudalism in the Middle Ages!
Undoubtedly, Germany is the only country that wins from the Eurozone and has increased its production and profits. In contrast, it has imposed strict, unbearable austerity measures on the other Eurozone member countries, even France! This austerity and unpopular reforms, such as in labor, have caused protests and political turmoil in many Eurozone members, including Greece, Italy, Spain, and Portugal.
In the past, countries that now are Eurozone members when they needed it could devalue their currency, although this increased inflation. However in the Eurozone, they do not have this financial weapon, as the currency rate is fixed and created to fulfill Germany's interests. The Eurozone was made only for Germany's benefit that began with a preferential currency rate! But even in Germany, the Deutsche (German) bank is now on the verge of collapse because of ''toxic'' bond exposure! In any case, things need to change as the founders of the E.U. as a common market did not dream of it as a 4th Reich of Germany but as a coalition that would be to the Europeans' advantage.
11. The wasting of taxpayers' money and the lobbies manipulating the European Parliament
The taxpayers’ money of the E.U. member countries is not respected but is often wasted in many ways. A characteristic example is the high salary of the European Parliament members (MEPs) and the middle and high-rank personnel of the European constitutions. Currently, the monthly pre-tax wage of MEPs is 8,484 euros! Not only do the European parliament members have high salaries, but also many are amenable to the pressures of various lobbies that control the European Union! These lobbies may exercise pressure for lenient green laws such as those for plants' carbon dioxide emissions, vehicle exhaust emissions, use of harmful pesticides and fertilizers, etc. That means that some MEPs may not fulfill the Europeans' interests but the interests of specific Trusts that make up the agenda!
Millions of euros have been spent as subsidies to various groups, such as farmers that may even use frauds to cheat E.U. inspectors, such as (a trick in the past) showing more cattle than they have by borrowing some from a neighbor's farm or soaking cotton to weigh more! However the ones who take enormous subsidies are nonprofit and non-governmental organizations that are often uncontrolled. No one cares or knows their real purpose (for example, some are 'specialized' in migrants), what they offer, and where all public E.U. money goes. Recently a female German captain was arrested in Italy for disobeying the Italian coastguard when she refused to dock her NGO ship and intended to carry migrants from the Libyan to the Italian coast! It seems that some NGOs that amass donations and E.U. grants are kind of 'traffickers,' transferring migrants to Europe.
Contrary to the U.S., the E.U. does not care where grants and subsidies go and if they are spent for the purpose they were granted. An example is the construction companies in some countries where the assignment was not open to everyone but the favored ones who bribed the authorities to choose them exclusively and overcharged the project to take back the money they used for bribery!
Moreover, in many E.U. countries, unemployed people are given benefits to stay home and remain unemployed. Instead, the state should focus on finding them a job, such as in Germany. The exploitation of benefits for unemployment or fictitious psychological disorders by those I call 'benefit collectors' would not be a problem if the E.U. were extraordinarily rich and afforded to pay everyone a benefit to stay home and surf the web and watch his smart T.V.! But Europe is not that wealthy, so the E.U. should respect public money the same way the U.S. does.
Consequently, the way public money is spent should be announced publicly on the Internet. The E.U. should be accountable to everyone for where public money is spent! Otherwise, they are frittered away! The prudent use of public E.U. money should begin with the salary of the E.U. members of Parliament (M.P.s) whose life is extravagant as if they lived in Dubai! It is time for the E.U. public money to be spent prudently and not wastefully!
12. The hypocrisy of Germany
The dominance of Germany over the E.U. is a significant issue. As mentioned above, Germany manipulates the Eurozone, i.e., the E.U. countries that share the euro as the common currency. In the Eurozone, the states have a fixed currency rate and do not have the chance to devalue their currency whenever they need it (although it increases inflation), as in the past. To put it briefly, today, the Eurozone only benefits Germany! Germany has imposed austerity measures and labor reforms on all Eurozone member states, which has destroyed their economies.
So, the E.U. is currently manipulated by Germany, which only minds its interest. Many Eurozone countries are under the sphere of influence of Germany, although they win nothing as Germany takes care of its own production and exports! On the other hand, production in the rest of the E.U. members has gradually declined. Germany controls even the European Commission and the ECB (European Central Bank), and it is not a coincidence that the latter is headquartered in Frankfurt, Germany, instead of Brussels! The ECB was the one that imposed capital controls in Greece and Cyprus, condemning them, especially the Greeks, to extreme poverty.
The IMF and the European Commission imposed Greece's unbearable austerity measures. For this purpose, the E.U. cooperated with the IMF (International Monetary Fund). However, they knew that the IMF had destroyed the economy of all nations that naively asked for their 'advice.' The IMF has as a top priority to give the creditors their money back, regardless of the counterproductive austerity measures that perpetuate the national debt of the country they ''assist'' to a non-sustainable level, as in Greece! Now, it is evident that Italy comes next!
Germany was a hypocrite when it accused the Greeks of tax evasion, whereas the receipt from purchasing goods became mandatory in Germany just in January 2020. That means tax evasion was enormous in Germany as it was up to the Germans' goodwill to state their real expenses, even without receipts! At the same time, it became mandatory for taxpayers to gather 30 percent of their costs on e-receipts from web payments in many E.U. countries.
13. Corruption
Another issue in the E.U. is corruption. Contrary to widespread belief, corruption is not a phenomenon in developing countries but may also characterize the rich, for example, in Germany and other wealthy European countries! For instance, in 2014, Jean Claud Juncker (former prime minister and finance minister of Luxemburg, former president of the Eurogroup, and former president of the European Commission) was accused of a tax avoidance scandal.
Black money (funds earned on the black market, on which income and other taxes have not been paid), money from the mafia, money earned in illegal ways, and money not officially declared to the tax office but deposited into accounts at tax haven countries and various offshore companies. Luxemburg is a tax haven, along with many other countries such as Ireland, Switzerland, Malta, Lichtenstein, Monaco, some British Isles, and Cyprus. In these countries, along with tax avoidance or evasion, there have also been money laundering cases.
However, there is no clear E.U. policy for various tax havens and offshore deposits, as the E.U. does not mind tax evasion and money laundering. In fact, many politicians have secured their money in offshore companies. The same is true for entrepreneurs and the mafia! The revelations by an international consortium of journalists with the notorious ''Panama Papers'' in 2015 and the ''Paradise Papers'' in 2017 confirmed in a way these allegations, while a female investigative journalist who participated in this investigation was assassinated with a car bomb by the mafia in Malta, a tax haven. The ''paradise papers'' involved even the British Queen's private estate! Another way of tax evasion is when commercial ships raise the flag of tax havens, such as Malta (or Panama).
Tax avoidance comprises legal methods to minimize the income tax owed by an individual or a business. Tax avoidance is more significant than tax evasion. The former is practiced by the rich, while everyone potentially practices the latter. Most companies have headquarters in countries with low taxation, such as the Netherlands. That means they may have many branches over the European continent that transfer money as loans and pay taxes only in their desired country!
The Germans are great hypocrites when they accuse other countries, such as Greece and Italy, of corruption, instead of minding their iniquity is often covered up. For example, on February 17, 2014, German president Cristian Wulff resigned when he was accused of participating in a financial scandal! According to media reports, the German company ‘’Siemens’ was accused of unfair competition after an investigation by the U.S. authorities.
Specifically, it was accused of bribing official public servants and politics in many countries, including Greece, to exclusively serve its interests and purchase its products. It is also said that the company overcharged its products in national competitions (in which the specific company was solely the official supplier), so it took back the money it spent on bribing! In Germany, the penalties for this kind of offense are lenient!
Characteristic was the massive financial scandal by the German carmaker Volkswagen (V.W.), which was also uncovered by the U.S. authorities, like the Siemens scandal. In September 2015, the German carmaker Volkswagen AG was caught using software designed to circumvent the USA emission tests for almost 500,000 of its model years 2009 through 2015 diesel engine Volkswagen cars. The software was in use in eleven million of its vehicles worldwide. It was detected when cars were being lab tested for emissions and, ordinarily, inactive pollution controls turned on.
The emissions were 35 times the legal limit of nitrogen oxides (NOx) in driving. This manipulation resulted in car models passing the USA Environmental Protection Agency (EPA) tests. The EPA issued Volkswagen a Notice of Violation, saying that the software functions as a defeat device prohibited by the ''U.S. clean air act.'' The company apologized and faced legal proceedings, compensation, regulatory investigations, and class action lawsuits in multiple countries.
Other scandals are associated with military equipment and arms, and the case of the German truck maker MAN was accused of bribery. Prosecutors in Munich said they have reason to believe that the German truck maker had a system to ‘boost the sales of trucks and buses.’ That system allegedly included illegal payouts to MAN customers. Between 2002 and 2005, an estimated $16 million in bribes is thought to have been paid out, most to customers outside Germany.
Importantly, it is said that famous German companies cooperated with the Nazis of Hitler during the second world war (WW2) and used concentration camp inmates as slaves for their factories! German firms like Bosch, Mercedes, Deutsche Bank, V.W. (Volkswagen), and many others exploited almost 300,000 workers as slaves! It is said that Audi, which was known as the ‘Auto Union’ during the Nazi period, used 20,000 concentration camp inmates who worked at its factories.
In 2011, the dynasty behind the BMW carmaker admitted to using slave labor during World War II. It is said that the electrical company Bosch used 20,000 workers as slaves, while Steelmaker ThyssenKrupp used a staggering number of 75,000 workers. It is also noted that the chemical and pharmaceutical behemoths BASF, Bayer, and Hoechst employed 80,000 slaves, while Mercedes used foreign inmates to assemble motors without being paid for this. It is said that Daimler-Benz threw tens of thousands of men and women, including foreign workers and concentration camp inmates, into the battle to produce engines for the German air force. He also used Jewish women from the concentration camps at Ravensbruck and Sachsenhausen as worker slaves.
14. The lack of a common educational policy
The E.U. needs more common justice and a shared educational scheme. A joint educational framework leading to a diploma baccalaureate (BAC) was proposed in the past. But there was no consensus about this.
The E.U. states agree on the Erasmus program of exchanging students between universities. However, sometimes it is violated as students from other E.U. countries studying at a foreign university use it to return for a while to their country! Unfortunately, Erasmus has turned to free, subsidized holidays as someone commonly sees the Erasmus students 'studying' at the cafes, the bars, and the gym! These granted with E.U. public fund 'vacations' need to be stopped, and the Erasmus program to be abolished!
Additionally, there is a discrepancy in the undergraduate and postgraduate studies that often differ between the E.U. members. That is a problem for Europeans who wish to work in different E.U. countries as there are some impediments that they need to overcome. A usual obstacle is that many E.U. countries demand someone who wants to work as a graduate to have a C1 (advanced) level of local language proficiency. The E.U. has no standard educational policy, so there is a need for a common educational system. But this will be a futile dream unless it becomes a federalization.
15. The lack of a common language
Finally, the E.U. countries do not have a common language, such as English. It is unbelievable that the politicians speak their own language in the European Parliament, translated into all E.U. member countries' languages! Although this may be profitable for translators, it is foolish! The leaders of E.U. countries encourage this 'Babel.' For instance, the German Chancellor and the French president always announce the press in their language. Unfortunately, the E.U. has no united official language, but every country uses its languages, which causes confusion and wastes time and money on translation.
A common language should be English which is already accepted as an international language. The E.U. also needs to make English use interchangeable with the IELTS and TOEFL scores as there is a considerable discrepancy between them and the European CEFR standards that are less strict than the British. Although an Australian, the E.U. standards are more lenient and appropriate to use globally. This discrepancy is a problem that will be solved only when there is a globally accepted ''international English'' rather than various organizations, including the British Council, the Australian IELTS, and the Cambridge university monopolizing English language teaching and certification. But ironically, it is American English that has globally prevailed!
Thanks for reading!
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